Question
Below are the correct answers I just need to see in a completed spreadsheet. A company manufactures four types of bicycles: standard, cruiser, sport, and
Below are the correct answers I just need to see in a completed spreadsheet.
A company manufactures four types of bicycles: standard, cruiser, sport, and off-road. Over the coming month, they need assistance in determining how many of each bicycles to manufacture to maximize their profits.
Bicycles have to go through four industrial processes in order to be manufactured: stamping, welding, assembly, and inspection. In addition, there are storage limits as all of the produced items must be stored in the warehouse. Finally, the company has determined the fixed set up costs and a minimum number of each bicycle they have to make to satisfy customers demand.
The following tables contains all of the relevant data for each bicycle type including the amount of time required in each department (in hours), the storage requirement (in sq.ft), and the profit per unit along with the minimum number of bikes required.
Bicycles | Stamping | Welding | Assembly | Inspection | Storage Space |
Standard | 1.3 | 2.3 | 2.1 | 1.5 | 4.2 |
Cruiser | 1.9 | 3.1 | 2.4 | 2.3 | 5.6 |
Sport | 3.5 | 3.3 | 3.3 | 3.2 | 5.0 |
Off-road | 4.2 | 4.0 | 4.5 | 4.0 | 6.2 |
Limits | 8000 | 8000 | 8000 | 8000 | 30000 |
Bicycles | Min Sales | Fixed Cost | Profit |
Standard | 50 | 25000 | 115 |
Cruiser | 0 | 50000 | 310 |
Sport | 0 | 300000 | 400 |
Off-road | 100 | 100000 | 225 |
A company wants to determine how many of each bicycle should be manufactured given all of the limitations such that they achieve the maximum possible profit. Solve the integer optimization problem in Excel to determine the optimal production plan (your decision variables must be integers at this point).
Hint: Do not forget to use Big Number concept for your forcing constraint.
1. Based on the integer solution, the optimal number of Cruiser Bicycles to manufacture is
Correct answer: 2,414
2. Based on your integer solution, the optimal number of Standard Bicycles to manufacture is
Correct answer: 50
3. Based on your integer solution, the Final Value of the objective function is
Correct answer: $601,590
4. Based on your integer solution, if the profit for Sport Bicycles changes to $450, the Final Value of the objective function would change to
Correct answer: $676,750
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